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The Barclays rate-rigging saga continues today as its now former chief executive Bob Diamond is awarded a $3 million pay-off upon his resignation.

Bob Diamond, former chief executive of Barclays.

Diamond resigned from the British bank last week after an embarrassing Libor-rigging scandal cost the bank $450 million in fines. The American CEO's lavish compensation has always been a hot-button issue in UK and today's news may add to that fervor.

In a filing today the British bank said Diamond would receive 12 months' salary, pension allowance and other benefits which amounts to roughly $3.1 million but would waive all of his unvested deferred bonus awards and long term incentive share awards totaling $31 million.

Barclays Chairman Marcus Agius, who also resigned amid the Libor mess but is staying on to find a replacement for Diamond, said in a statement: "The Board deeply regrets the circumstances that led to Bob resigning his positions at Barclays. Despite having no personal culpability, he recognises more than anyone the negative attention that they have generated and has taken characteristically strong action to address that. These circumstances do not detract in any way from the tremendous legacy that Bob has left at Barclays, and his actions are clear indications of his commitment to the institution to which he has contributed so much."

Diamond, who testified before a Parliamentary committee last week, said, "For the past 16 years I've had the honour of working at Barclays. The wrongful actions of a relative few should not detract from the outstanding work that Barclays employees carry out each day on behalf of clients and customers around the world. It is my hope that my decision to step down and today's agreement on my remuneration will help close this chapter and allow Barclays to move forward and prosper."

The Massachusetts-native's resignation as CEO was apparently a very difficult decision according to testimony from chairman Agius today. Agius told members of Parliament that he visited Diamond at his London home and asked him to resign amid growing pressure from regulators. "He was not in a good place," Agius said.

The Libor scandal has put Barclays in the spotlight but it's not the only bank involved as JPMorgan Chase, Citi, UBS and Bank of America are also being investigated.